THE DEFICIT has been a constant in our ears ever since someone at Conservative HQ discovered that because the GDP was exceptionally low in 2010, THE DEFICIT was a high percentage of it.
In fact, it was about 10%.
Gradually, because the GDP has increased, THE DEFICIT has gradually become a lower percentage of the GDP.
It is now of the order of 5%……..or as Messrs Cameron and Osborne prefer: “We have HALVED the deficit!”.
Yes…from 10% to 5%.
The graph above shows that as far as THE DEFICIT is concerned, the United Kingdom continues to UNDERPERFORM the European Union.
(If you click on the “EXPLORE DATA” link on the above graph, you will land on the official Eurostat page where you can add other countries to the graph for comparison and have as much fun with statistics as our Coalition Government did!)
Regrettably, I will not have the pleasure of hearing the hubris-fired reading of the Budget Speech by Chancellor Gideon…..and I do SO enjoy hearing fiction read out-loud!
Today’s press is full of advice for him but unfortunately, he will not be able to stray far from the path he has already chosen for us.
The components of today’s Budget will be cosmetic low-cost “initiatives” , largely fueled by Public Service casualties. Gideon WILL brazen it out by feeding the nation carefully chosen and spun statistics but since he painted himself into Austerity Corner, he cannot move. He will try to give the impression that he is able to somehow warm the economy……. but this one-trick pony Chancellor will do it to the accompaniment of: “Throw another Public Servant on the fire!”
Yes, there may be talk of “saving through efficiencies” but we know that efficiencies are a myth.
“Need a quick £2.5 billion? Sack a load of Public Servants and slash services.” The arithmetic is very simple!
By the way, don’t just blame Gideon. The Cabinet of “yes men” is fully supportive of his fiscal fumbling. They’re right behind him!
Incidentally, the OBR is publishing its latest growth and borrowing forecasts today. More ripping yarns!
The government’s target for the elimination of the structural deficit, in keeping with tradition, continues to slip further and further into the future – where it will remain for many years to come. At the moment, the projected target is 2017/18.
We can already predict that the next estimate may be headed towards 2018/19……and so on.
p.s. I wonder if he’ll mention the banks?